Jan 31, 2013 7:00pm EST
spending on defense really collapsed and helped bring down yesterday's gdp. >> yes, it did. >> so all the liberals are saying see, we told you so, if you cut spending, you're going to ruin the economy. do you believe that? >> no, not at all. government spending is taxation. milton always said it. the government redistributes resources. you can see it really clearly. two-person world, farmer a and farmer b, if farmer b gets unemployment benefits, who do you think pays for them, farmer a? you know, government spending is taxation. the reason we have the great recession is because of the government spending, not in spite of it. >> follow-up. it would be bullish for economic growth. >> yes, it would. >> but this is the argument i get. it shows up as a negative in the gdp accounts. at least some of it. >> you're right. >> so what do you do? do you just go on ahead and cut government spending? and let the gdp accounts do what they're going to do? >> the gdp accounts will grow better doing that. that's just the direct effect of spending there. but imagine if we had 100% of gdp on government
Jan 29, 2013 7:00pm EST
got, defense hawks on the republican caucus that are concerned on the impact on the military we all are. and that is why we have proposed election that have replaced some of that spending cuts in the budget. but to your point, we have to stay committed and that is that we are going to reduce spending. we need to honor the american taxpayers deserve that. >> just as a last thought. we are five months into this deal. we are going to do march first. that is $24 billion lower in spending cuts. it seems to out of a $3.8 trillion budget you are down to 55 or $60 billion and most of that is slower growth rates. it seems to me everybody is cross the board can take that and the american public can see that we are not greece. >> the democrats want to do this with tax increases but that doesn't solve the problem. we know we have a spending problem and we need to honor the commitment that was made to the american people and we now need to tackle, we have to reform the programs social security and medicare and medicaid and others. we need to do it here and i believe republicans in the senate and
Jan 30, 2013 7:00pm EST
was because defense spending went down so far. the reason everybody was wound up about the fiscal cliff was too quickly cuts in deficit jam us into recession. that's a widely publicized finding from cbo to independent analyst. your guy's formula is for a 2013 recession. i know you like spending cuts. this isn't the time. >> james -- >> when is the time? >> right. who are the keynesians? as much as i respect jared we tried it in 2009 and 2010. >> it helped a lot. >> it didn't work. that's why this is the lowest recovery on record. >> americans understand every dollar will be taken at some point from them in taxes or inflation. >> what do you think is going on in europe? >> they are in private risk taking and people willing to invest. >> what do you think is going on in europe. >> before e we said how great the economy was in the fourth quarter, yes, amid the bad news it was a bright spot. but the great income number, a lot of it was because of the tax trap the president demanded with income getting pulled into the fourth quarter. >> this is a great point. i want to close on this point. t
Feb 1, 2013 7:00pm EST
to cut defense. some of them actually are willing to do that. you are, i guess. but i mean, i think that's really the issue. the reason why they constructed this is so it would hurt everybody. i don't think it's a good idea. but my whole philosophy is i don't think the deficit is our top issue. i think if you're really concerned about the deficit we should have gone over the fiscal cliff and cut the deficit that way. but if you aren't concerned about the deficit, if you think job growth is the most important thing and growth in general, then i don't think you should either cut taxes -- i don't think you should raise taxes or cut spending right now. i think you should focus just on stimulus. >> what they should do is slash across the board all these goofy departments, just really rip into them. and along with that pro-growth tax reform. especially pro-growth business tax reform. and then you'll have the kind of growth that keith is talking about that would actually solve the financial position. >> keith wants growth in general. i don't want growth in general. i want private sector growth.